New Economics Papers
on Business, Economic and Financial History
Issue of 2011‒05‒30
27 papers chosen by

  1. Exotic drugs and English medicine: England’s drug trade, c.1550-c.1800 By Wallis, Patrick
  2. ‘Deep’ integration of 19th century grain markets: coordination and standardisation in a global value chain By Velkar, Aashish
  3. Is Globalization Inevitable in the Marxian Paradigm? By Ramirez, Miguel D.
  4. Becoming a London goldsmith in the seventeenth century: social capital and mobility of apprentices and masters of the guild By Schwarzberg, Raphaelle
  5. From a “normal recession” to the “Great Depression”: finding the turning point in Chicago bank portfolios, 1923-1933 By Postel-Vinay, Natacha
  6. The contributions of warfare with Revolutionary and Napoleonic France to the consolidation and progress of the British industrial revolution By O'Brien, Patrick
  7. Program Evaluation, Performance Budgeting and PART: The U.S. Federal Government Experience By Katherine Willoughby; Paul Benson
  8. History, Expectations, and Leadership in Evolution of Cooperation By Daron Acemoglu; Matthew O. Jackson
  9. Spinning Welfare: the Gains from Process Innovation in Cotton and Car Production By Tim Leunig; Joachim Voth
  10. Disability, Pension Reform and Early Retirement in Germany By Axel H. Boersch-Supan; Hendrik Juerges
  11. Coercive Contract Enforcement: Law and the Labor Market in 19th Century Industrial Britain By Suresh Naidu; Noam Yuchtman
  12. Weather Shocks, Sweet Potatoes and Peasant Revolts in Historical China By Ruixue Jia
  13. Exports and Italy’s economic development: a long-run perspective (1863-2004) politiche abitative e domanda potenziale (o inevasa) By Barbara Pistoresi; Alberto Rinaldi
  14. Inequality, Human Capital Formation and the Process of Development By Oded Galor
  15. Economic effects of vertical disintegration: the American motion picture industry, 1945 to 1955 By Silver, Gregory Mead
  16. Western guilt and Third World Development : Part 2 By Baafi Antwi, Joseph
  17. Books or bullion? Printing, mining and financial integration in Central Europe from the 1460s By Chilosi, David; Volckart, Oliver
  18. On the Origins of Gender Roles: Women and the Plough By Alesina, Alberto; Giuliano, Paola; Nunn, Nathan
  19. Moral Impossibility in the Petersburg Paradox : A Literature Survey and Experimental Evidence By Tibor Neugebauer
  20. The Journal Rankings of Central Banks By Emanuel Kohlscheen
  21. Die Rezeption der John Maynard Keynes Manuskripte von 1904 bis 1911. Anregungen für die deutschsprachige Diskussion By Muchlinski, Elke
  22. Labour market dynamics in Canada, 1891-1911: a first look from new census samples By Inwood, Kris; MacKinnon, Mary; Minns, Chris
  23. Patterns in U.S. urban growth (1790–2000) By González-Val, Rafael; Lanaspa, Luis
  24. Ex-post assessment of merger effects: the case of Pfizer and Pharmacia (2003) By Leheyda, Nina; Beschorner, Patrick; Hüschelrath, Kai
  25. Path dependence in technologies and organizations: a concise guide By Carolina Castaldi; Giovanni Dosi; Evita Paraskevopoulou
  26. Why has Britain fewer marginal seats than it used to? By Robert Hodgson; John Maloney
  27. Corporate values guiding the world's largest family-owned businesses: A comparison with non-family firms By Ceja, Lucia; Tapies, Josep

  1. By: Wallis, Patrick
    Abstract: What effect did the dramatic expansion in long distance trade in the early modern period have on healthcare in England? This paper presents new evidence on the scale, origins and content of English imports of medical drugs between 1567 and 1774. It shows that the volume of medical drugs imported exploded in the seventeenth century, and continued growing more gradually over the eighteenth century. The variety of drugs imported changed more slowly. Much was re-exported, but estimates of dosages suggest that some common drugs (e.g.: senna, Jesuits’ bark) were available to the majority of the population in the eighteenth century. English demand for foreign drugs provides further evidence for a radical expansion in medical consumption in the seventeenth century. It also suggests that much of this new demand was met by purchasing drugs rather than buying services.
    JEL: L81 N0 I10
    Date: 2010–07
  2. By: Velkar, Aashish
    Abstract: This paper explores the dynamics underlying integration of the international grain markets of the nineteenth century. It demonstrates that ‘deep’ integration implied changes to market structures, firm strategies and the commodity being marketed. Coordination within grain markets occurred at multiple levels (markets, firms, committees, etc.) and involved various firm strategies (integration, co-specialisation, voluntary consensus, etc.). There was a greater degree of standardisation as centralised grading systems were developed by commodity exchanges in the US and UK. Greater standardization made the commodity fungible and tradable through an institutional rather than a technical process. The global value chain that emerged during this period developed governance structures and institutions to coordinate the enormous expansion in scope as well as scale of trade. Many of these structures and institutions continue to coordinate the international markets in the twenty-first century. The paper uses the global commodity value chain (GCC) approach to develop these arguments and focuses on the international wheat trade of the nineteenth century - centred on UK as the major importer. This research stresses that governance and institutions that enable global disintegration (of the value chain) crucially drives and informs our understanding of market integration – they are two sides of the same historical coin.
    JEL: L81 N0
    Date: 2010–07
  3. By: Ramirez, Miguel D. (Trinity College, Hartford, CT)
    Abstract: This paper examines Marx's views on globalization and its supposed inevitability, and contends that they underwent a substantial evolution and revision after the publication of the Communist Manifesto. In the case of China, a prime example of the Asiatic mode of production, Marx even doubted whether globalization (capitalism) would ever be able to accomplish its historical mission of developing the forces of production and creating the material conditions for a higher mode of production, viz., Communism. While in the Russian case, he seriously entertained the notion that it could bypass the hardships and vicissitudes of capitalism and forge its own unique path to socialism. If accepted, this interpretation represents a serious challenge to the universality and validity of Marx's materialist conception of history.
    JEL: B10 B14 B24
    Date: 2011–05
  4. By: Schwarzberg, Raphaelle
    Abstract: Social capital has been used to describe the links between guildsmen in pre-industrial times. However, contemporary historical research has shown that both English society and the guilds displayed more openness to newcomers than had been previously thought. This new perspective however does not preclude the use of social ties by individuals to gain a competitive advantage, as potential apprentices to find a master, or as Freemen to climb the ladder of power within the guilds. This dissertation will enquire into what type of social capital was used and by whom predominantly in the Goldsmiths’ Company. It rests on the creation of a new data set of fifty-seven masters who practiced their trade in the second half of the seventeenth century. Social capital will be analyzed according to geographical proximity, occupational proximity and kinship as they manifested in social networks. Results indicate that on the one hand, the Goldsmiths’ Company was on the whole open to individuals with no previous contacts through geographical proximity, occupational proximity or kin. The openness must however be nuanced with respect to the rural and poor apprentices as well as women. On the other hand, internal mobility within the guild highly depended on the belonging to a sub-group of goldsmiths who were practising banking activities. These findings confirm the recent literature on openness but bring new light to the processes of mobility and social capital within the guild of the London Goldsmiths’ Company.
    JEL: N0 O52 Z13
    Date: 2010–06
  5. By: Postel-Vinay, Natacha
    Abstract: This dissertation analyses the long-term behaviour of bank financial ratios from 1923 to 1933, focusing on a population of 193 Chicago state banks. These banks are divided into earlier and later failure cohorts. The main conclusion is that a turning point in banks’ vulnerability is identifiable before the first banking crises, between the end of 1928 and June 1930. A second, related conclusion is that this upsurge in vulnerability (as expressed by such variables as retained earnings and other real estate) is made even more significant when considering banks’ behaviour in the preceding decade. In almost all cases earlier failures behaved more riskily in the 1920s, which explains their earlier and higher vulnerability at the start of the depression.
    JEL: N0 F3 G3
    Date: 2011–03
  6. By: O'Brien, Patrick
    Abstract: My essay surveys a range of printed secondary sources going back to publications of the day (and includes research in primary sources) in order to revive a traditional and unresolved debate on economic connexions between the French and Industrial Revolutions. It argues that, on balance, the costs flowing from the reallocation of labour capital and technical knowledge to wage warfare from 1793-1815 have been overstated in relation to the range of benefits analysed below that accrued from: crowding out a potential invasion by Napoleon’s armies; improvements to the skills and discipline of the workforce; the integration of Ireland into a national market; the accelerated diffusion of technologies associated with coal and iron; the circumvention of diminishing returns to agriculture and above all from a victory that left the Royal Navy with undisputed command of the oceans and the realm’s maritime sector, poised and ready to retain most of the gains from trade and servicing the international economy, obtained at the expense of rivals during these long wars with France. My conclusion is that the costs and benefits derived from participation in a global war from 1793 to 1815, that was integral to the era’s geopolitical and mercantilist international economic order could never be measured. But in the context and history of that order it is difficult to represent their outcome as anything other than positive and significant for the consolidation and progress of Britain’s famous transition to become Europe’s First Industrial nation.
    JEL: O52 O52 N0 L64
    Date: 2011–01
  7. By: Katherine Willoughby (Andrew Young School of Policy Studies, Georgia State University); Paul Benson (Andrew Young School of Policy Studies, Georgia State University)
    Abstract: An examination of the history of budget reform in the United States indicates a perpetual tug of war between the executive and legislative branches of government for power. But surprisingly, in spite of this highly charged political process, there exists a consistent and common thread of concern for improving government performance and a desire to inject more “rationality” (measurement and evaluation) into budgeting decisions. In the past century, U.S. federal budget reforms have been centralizing (the Budget Act of 1921), activity-based (performance budgeting of the 1950s), focused on program evaluation (PPBS in the 1960s), management-oriented (MBO in the early 1970s), bottom-up (ZBB in the mid-1970s), draconian (Gramm-Rudman-Hollings of the 1980s), and concerned with results (GPRA in the 1990s). Unfortunately, establishing a direct link between and among performance measurement, program evaluation and final appropriations remains elusive. In the U.S. today, the stakes have become too significant and entrenched. The sheer size of the U.S. federal budget as well as the dramatic change in the nature of federal expenditures (from predominantly supporting government administration to funding transfer payments to individuals) ups the ante of the politics of the public budgeting process. Perhaps more importantly, the overwhelming U.S. federal deficit and debt simply overshadow consideration of performance as the President and Congress mull over literally billions of dollars in cuts to the current and next fiscal year budgets.
    Date: 2011–05–13
  8. By: Daron Acemoglu; Matthew O. Jackson
    Date: 2011–05–22
  9. By: Tim Leunig; Joachim Voth
    Abstract: Economists and economic historians want to know how much better life is today than in the past. Fifty years ago economic historians found surprisingly small gains from 19th century US railroads, while more recently economists have found relatively large gains from electricity, computers and cell phones. In each case the implicit or explicit assumption is that researchers were measuring the value of a new good to society. In this paper we use the same techniques to find the value to society of making existing goods cheaper. Henry Ford did not invent the car, and the inventors of mechanised cotton spinning in the industrial revolution invented no new product. But both made existing products dramatically cheaper, bringing them into the reach of many more consumers. That in turn has potentially large welfare effects. We find that the consumer surplus of Henry Ford's production line was around 2% by 1923, 15 years after Ford began to implement the moving assembly line, while the mechanisation of cotton spinning was worth around 6% by 1820, 34 years after its initial invention. Both are large: of the same order of magnitude as consumer expenditure on these items, and as large or larger than the value of the internet to consumers. On the social savings measure traditionally used by economic historians, these process innovations were worth 15% and 18% respectively, making them more important than railroads. Our results remind us that process innovations can be at least as important for welfare and productivity as the invention of new products.
    Keywords: Process innovations, new goods, welfare, consumer surplus, mechanisation, massproduction, automobiles, cotton, industrial revolution, second industrial revolution
    JEL: N22 N24 O31 O40
    Date: 2011–05
  10. By: Axel H. Boersch-Supan; Hendrik Juerges
    Abstract: The aim of this paper is to describe for (West) Germany the historical relationship between health and disability on the one hand and old-age labor force participation or early retirement on the other hand. We explore how both are linked with various pension reforms. To put the historical developments into context, the paper first describes the most salient features and reforms of the pension system since the 1960s. Then we show how mortality, health and labor force participation of the elderly have changed since the 1970. While mortality (as our main measure of health) has continuously decreased and population health improved, labor force participation has also decreased, which is counterintuitive. We then look at a number of specific pension reforms in the 1970s and 1980s and show that increasing or decreasing the generosity of the pension system has had the expected large effects on old-age labor force participation. Finally, we explore the possible link between early childhood environment and early retirement by analyzing the retirement behavior of cohorts born during World War I, a period of harsh living conditions among the civilian population in Germany. Our data show higher early retirement rates among those cohorts, presumably because those cohorts still suffer from worse health on average many decades after their birth.
    JEL: H55 J14
    Date: 2011–05
  11. By: Suresh Naidu; Noam Yuchtman
    Abstract: British Master and Servant law made employee contract breach a criminal offense until 1875. We develop a contracting model generating equilibrium contract breach and prosecutions, then exploit exogenous changes in output prices to examine the effects of labor demand shocks on prosecutions. Positive shocks in the textile, iron, and coal industries increased prosecutions. Following the abolition of criminal sanctions, wages differentially rose in counties that had experienced more prosecutions, and wages responded more to labor demand shocks. Coercive contract enforcement was applied in industrial Britain; restricted mobility allowed workers to commit to risk-sharing contracts with lower, but less volatile, wages.
    JEL: J41 K31 N13 N43
    Date: 2011–05
  12. By: Ruixue Jia (Institute for International Economic Studies, Stockholm University)
    Abstract: Does production technology adoption affect conflict? This paper studies this question with yearly historical data on weather, peasant revolts and the diffusion of sweet potatoes in China between 1470 and 1900. It shows that droughts increased peasant revolts by about 10% whereas the effect of floods was not significant. Moreover, the diffusion of a new crop, sweet potatoes, mitigated the effects of droughts on revolts.
    Date: 2011–01
  13. By: Barbara Pistoresi; Alberto Rinaldi
    Abstract: This paper investigates the relationship between real export and real GDP in Italy from 1863 to 2004 by using cointegration analysis and causality tests. The outcome suggests that these variables comove in the long run but the direction of causality depends on the level of economic development: in the period prior to WW1 the growth of the Italian economy led that of exports, while in the post-WW2 period the causal relationship was reversed with the expansion of exports that determined the growth of the Italian economy
    Keywords: Export led growth hypothesis, unit root tests, cointegration analysis, Granger – causality
    JEL: F43 O11 N1 N7
    Date: 2011–05
  14. By: Oded Galor
    Abstract: Conventional wisdom about the relationship between income distribution and economic development has been subjected to dramatic transformations in the past century. While classical economists advanced the hypothesis that inequality is beneficial for growth, the neoclassical paradigm dismissed the classical hypothesis and suggested that income distribution has limited role in the growth process. A metamorphosis in these perspectives has taken place in the past two decades. Theory and subsequent empirical evidence have demonstrated that income distribution has a significant impact on human capital formation and the development process. In early stages of industrialization, as physical capital accumulation was a prime engine of growth, inequality enhanced the process of development by channeling resources towards individuals whose marginal propensity to save is higher. In later stages of development, however, as human capital has become a main engine of growth, equality, in the presence of credit constraints, has stimulated human capital formation and growth. Moreover, unequal distribution of land has been a hurdle for economic development. While industrialists have had an incentive to support education policies that foster human capital formation, landowners, whose interests lay in the reduction of the mobility of their labor force, have favored policies that deprived the masses of education.
    JEL: O11 O15
    Date: 2011–05
  15. By: Silver, Gregory Mead
    Abstract: In 1948, the United States Supreme Court declared the operations of eight of the nation’s largest motion picture studios in violation of the 1890 Sherman Antitrust Act. The decision ordered them to disintegrate their producer-distributor roles from cinemas. The Court believed this would promote competitive practices in a hitherto uncompetitive industry. However, these desired benefits were not entirely reached. Instead, by leading the Hollywood studio system to collapse, the Court also distorted the supplychain for motion pictures. This work utilizes Coasian analyses of transaction costs to show that institutional integration was an efficient structure for the motion picture industry. It explores the motives to integrate and the benefits it garnered. Having laid this groundwork, it then assesses the effects theatre divorcement had on the industry and offers plausible counterfactuals had the studios remained intact after 1948.
    JEL: N0 L82
    Date: 2010–11
  16. By: Baafi Antwi, Joseph
    Abstract: This work considered the argument of the opponent of Western guilt and the final verdict was issued. The four thematic areas; colonialism, neo-colonialism, slave trade and trade barriers were used. The work found that these events were of enormous benefits to Third World countries though widely criticized by the proponents of Western guilt. The work also considered factors that have resulted in the underdevelopment of Third World countries. These factors were identified as human resource development and corruption. If these two factors were given serious consideration, Third World countries would have developed much faster with the abundant physical resources at their disposal. The verdict was that, the density of Third World countries lies in their own hands. Their development cannot be trace to any event present or future. Realizing the need for human resource development and fighting corruption is an important foundation that Third World countries must lay.
    Keywords: Third World Countries; Developed Countires; Corruption;
    JEL: F02
    Date: 2011–05–18
  17. By: Chilosi, David; Volckart, Oliver
    Abstract: This paper examines the role of the advent of printing and the mining boom in explaining financial integration in Central Europe from the 1460s. It finds that changes in liquidity were not a major determinant of financial integration, but the mining boom fostered financial links between the mining districts and the rest of the region. Printing promoted financial integration mainly because it triggered a fall in the costs of transmitting information rather than because it facilitated human capital formation or institutional change. The financial significance of the advent of printing was comparable to that of the mining boom.
    JEL: N0 R14 J01
    Date: 2010–07
  18. By: Alesina, Alberto (Harvard University); Giuliano, Paola (University of California, Los Angeles); Nunn, Nathan (Harvard University)
    Abstract: This paper seeks to better understand the historical origins of current differences in norms and beliefs about the appropriate role of women in society. We test the hypothesis that traditional agricultural practices influenced the historical gender division of labor and the evolution and persistence of gender norms. We find that, consistent with existing hypotheses, the descendants of societies that traditionally practiced plough agriculture, today have lower rates of female participation in the workplace, in politics, and in entrepreneurial activities, as well as a greater prevalence of attitudes favoring gender inequality. We identify the causal impact of traditional plough use by exploiting variation in the historical geo-climatic suitability of the environment for growing crops that differentially benefited from the adoption of the plough. Our IV estimates, based on this variation, support the findings from OLS. To isolate the importance of cultural transmission as a mechanism, we examine female labor force participation of second-generation immigrants living within the US.
    Keywords: culture, beliefs, values, gender roles
    JEL: J16 N30
    Date: 2011–05
  19. By: Tibor Neugebauer (Luxembourg School of Finance, University of Luxembourg)
    Abstract: The Petersburg paradox has led to much thought for three centuries. This paper describes the paradox, discusses its resolutions advanced in the literature while alluding to the historical context, and presents experimental data. In particular, Bernoulli’s search for the level of moral impossibility in the Petersburg problem is stressed; beyond this level small probabilities are considered too unlikely to be relevant for judgment and decision making. In the experiment, the level of moral impossibility is elicited through variations of the gamble-length in the Petersburg gamble. Bernoulli’s conjecture that people neglect small probability events is supported by a statistical power analysis.
    Keywords: Petersburg paradox; economic history; bounded rationality; significance level; experimental economics
    JEL: B3 C44 C9 D8 G1 N0
    Date: 2010
  20. By: Emanuel Kohlscheen (Central Bank of Brazil)
    Abstract: This paper analyzes the citation patterns of the central banks of the 15 largest monetary areas of the world that had an active working paper series in 2010. It proceeds to construct a novel journal ranking that is more suited for monetary authorities than the academic journal rankings currently in vogue. We report individual country rankings as well as the global rankings. While important regional differences emerge, the Journal of Monetary Economics, the American Economic Review, the Journal of Money, Credit and Banking and the Journal of Finance stand out as the top outlets in the global ranking. Sweden’s Riksbanken appears to be the monetary authority that is most finely tuned with academia, followed by the European Central Bank.
    Date: 2011–05
  21. By: Muchlinski, Elke
    Abstract: This paper provides textual evidence of Keynes's writing and composing on issues which are linked to philosophy, moral science and economics. As a philosopher Keynes was concerned with contemporary discussion on knowledge, probability, judgment and methods of reasoning. He participated in the Bloomsbury Group. He developed a distinct view on ethics, egoism, individual and conventional judgment, animal spirits and responsibility. He denied that expectations can be reduced to mathematical calculation. He developed ways to theorize about uncertainty, confidence and the future. The project Keynes as a philosopher is of great importance in English-and French-speaking discourses. Unfortunately it has not been received and recognized in German discourses. --
    Keywords: philosophy,ethics,theory of probability,theory of knowledge,animal spirits,Bloomsbury Group,uncertainty versus risk,economic methodology and language
    Date: 2011
  22. By: Inwood, Kris; MacKinnon, Mary; Minns, Chris
    Abstract: This paper uses newly available census evidence to portray changes in labour market outcomes in Canada between 1891 and 1911. Multiple census cross-sections allow for the documentation of how the location, occupation, and earnings of Canadian and foreign-born cohorts changed over time. The westward movement of young anglophones after 1901 contributed to the formation of a national labour market. Anglophone, francophone, and foreign-born cohorts all experienced significant occupational mobility between 1891 and 1911, but francophones and immigrants remained over-represented at the bottom of the occupational ladder. Greater occupational and geographical mobility supported higher rates of earnings growth among Anglophones.
    JEL: O51 N0
    Date: 2010–11
  23. By: González-Val, Rafael; Lanaspa, Luis
    Abstract: This paper reconsiders the evolution of the growth of American cities since 1790 in the light of new theories of urban growth. Our null hypothesis for long-term growth is random growth. We obtain evidence supporting random growth against the alternative of mean reversion (convergence) in city sizes using panel unit root tests. We also examine mobility within the distribution to try to extract growth patterns different from the general unit root trend detected. We find evidence of high mobility when we model growth as a first-order Markov process. Finally, using a cluster procedure we find strong evidence in favour of conditional convergence in city growth rates within convergence clubs, which we can interpret as “local” mean-reverting behaviours. Both the high mobility and the results of the clustering analysis seem to indicate a sequential city growth pattern.
    Keywords: city size; urban growth; random growth; sequential city growth; transition matrices; club convergence
    JEL: O18 C12 R12 R11
    Date: 2011–05–20
  24. By: Leheyda, Nina; Beschorner, Patrick; Hüschelrath, Kai
    Abstract: The paper studies the effects of the Pfizer and Pharmacia (2003) merger on competition in the Swiss pharmaceutical market and compares the assessment of the Swiss Competition Commission (COMCO) with the post-merger market developments. We find that the merger has had a miniscule impact on the Swiss pharmaceutical market. This has primarily to do with the fact that the product portfolios of both companies have shown no or only slight overlaps. In both cases of potential anticompetitive effects, the companies successfully proposed to divest some of their assets in order to prevent a further strengthening of their dominant position. The remedies included products in the development phase which were not available on the market at the time of the decision. In other markets in which either an overlapping of businesses of both companies existed or in which one of the merging entities held a dominant market position, no significant effects of the merger were noticed. This might have to do with both, existing price regulation in the Swiss drug industry and changes in Pfizer's product portfolio following the merger. Furthermore, with respect to other potentially interesting market characteristics such as investment behaviour, R&D, sales or employment, available data on global company level does not allow an isolation of the possible effects of the merger. --
    Keywords: mergers,ex-post evaluation,pharmaceutical markets
    JEL: K21 L42 L62
    Date: 2011
  25. By: Carolina Castaldi; Giovanni Dosi; Evita Paraskevopoulou
    Abstract: The note on which an entry for the Palgrave Encyclopedia of Strategic Management will draw offers a beginner's guide to path dependency in technologies and organizations. We address the very meaning of the concept and its centrality in various aspects of economic analysis. We outline the various levels of the ecomic system in which it is observable, its sources, concequences and different formal representations of path dependent processes.
    Keywords: Path dependence, lock-in, dynamic increasing returns, organizational inertias
    Date: 2011–05–19
  26. By: Robert Hodgson (Department of Economics, University of Exeter); John Maloney (Department of Economics, University of Exeter)
    Abstract: The decline in the number of marginal constituencies in Britain is often attributed to the increasing geographical polarisation of the electorate, with the North having become even more pro-Labour and the South even more pro-Conservative. We show that this has been more than neutralised by the weakening links between social class and voting behaviour, and explain the fall in the number of marginals by the party, not just personal, incumbency effects which tend to pile up in all but the most marginal seats.
    Date: 2011
  27. By: Ceja, Lucia (IESE Business School); Tapies, Josep (IESE Business School)
    Abstract: This paper analyzes formally stated corporate values, a key topic of concern in the field of family businesses. More specifically, the study aims to contribute to the literature by enabling a deeper understanding of the differences and similarities of the corporate values at the foundation of the world's top 100 largest family-owned firms and non-family businesses. According to the study findings, the values of integrity, respect, and customers are the top three most-mentioned values in both family-owned businesses and non-family companies. Likewise, there are distinct values that are mentioned often by family-owned firms and seldom stated or not stated at all by non-family businesses. These values tend to be more people-oriented; emphasize collectivity more than individuality; and support a long-term perspective and a sense of stewardship and responsibility toward the future of the family and the community in which the business operates.
    Keywords: family-owned firms; corporate values; positive psychology; family-business values;
    Date: 2011–03–09

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